Slow-Motion Capitulation

Sentiment indicators suggest that most investors have given up on the stock market by now. Will a bull market follow?

LAST YEAR, WE SAW THAT market fall apart in what can only be described as a slow-motion crash. And now, thanks to the overwhelming effects of the economic crisis, we just may be seeing slow-motion capitulation.

In other words, investors seem to have accepted their losses rather than panicking all at once. This might be taken as a sign that the market has already extracted enough pounds of flesh.